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solely on information returns that third-party payors
fraudulently or erroneously filed.
Under section 7491(a), the burden of proof with respect to
any factual issue shifts to the Commissioner if the taxpayer
introduces credible evidence with respect to that issue.
However, section 7491(a) does not apply unless the taxpayer has
maintained all records required under the Code and has cooperated
with reasonable requests by the Secretary for witnesses,
information, documents, meetings, and interviews. Sec.
7491(a)(2)(B). Petitioner did not testify, she called no
witness, and she presented no credible evidence relevant to any
factual issue in this case. Further, the record reflects that
petitioner failed to cooperate with respondent in providing
information relating to her 1995, 1996, and 1997 tax years. For
example, petitioner answered 23 of respondent’s 26 requests for
admissions: “Denies, with the qualification that Petitioner
neither possesses sufficient documentary evidence nor has
sufficient recollection that would cause her to truthfully admit
the alleged fact.” Those requests for admissions concerned
petitioner’s relationship with the payors, whether she received
income from those entities in the amounts determined, and whether
she received Forms W-2, 1099-MISC, and 1099-R from those payors.
We find that section 7491(a) is not applicable to this case.
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